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5 Costly Mistakes To Avoid When Buying New Construction

Homeownership is a dream that we all hope to realize. Your dream home represents the security of not having to worry about paying rent every month particularly in your sunset years when you are no longer actively working.

If you are raising a family, then home at Eighty Seven Park represents even more. It is a home where you can raise your children in the safe neighborhoods and friendly weather of Miami Beach.

Your new home also represents one of the single largest investments that most of us will make in our lifetime. With luxury homes at Eighty Seven Park going for hundreds of thousands of dollars, it is clearly a decision one should not make lightly.

The decision to get a new construction home where you are the very first owner, of course, will be determined by subjective things such as your personal taste on the architecture and the decor of your new home but you should also have a checklist of objective decision-making criteria.

Your new home at Eighty Seven Park should represent an investment that gives you good value for money and emotional satisfaction. Considering the size of this investment, most new homeowners will probably seek some sort of financing from a lender to finance the purchase of their luxury home at the landmark building, Eighty Seven Park at Miami Beach.

Now that we’ve agreed that purchasing a home is an investment than like with all investments it is possible to unwittingly make mistakes that will cost you, the new homeowner either now or in the future. So what are some of those mistakes that you should avoid when buying new construction?

Settling on a lender without adequate due diligence

The institution that will finance the purchase of your new home at Eighty Seven Park is one of many. Before you give your business to any particular lender, take your time to find out what separates them from the many mortgage lenders available. The developer of your new home will also provide you with the option of a particular lending company that they’re more comfortable with and have done business with for many years. 

Again, do not be too quick to settle for this option, .ou should shop around and negotiate for the best rates you can get. Shop for the best rates and always have a spreadsheet in handy to get the accurate monetary benefit or costs from all the potential lenders. Rushing when making this decision could prove very costly because mortgage commitments run for decades leaving you paying large amounts in interest rates.

Investing in upgrades that don’t add value

Consider your new home at Eighty Seven Park as an investment. An investment is only as valuable as the return it will give should you consider to flip it later all or use it as a rental property. You should only invest in upgrades that would make it more appealing for any future potential buyers or tenants because this will translate into a higher selling price or a higher rental income. Unnecessary upgrades will cost you an increase in the cost of your home but might, unfortunately, price it out of the market if you want to sell it or make any viable rent you want to charge too high to attract any tenants.

Not vetting the developer

The final product you call your home is very much dependent on the reputation of your developer. As a future homeowner, it forces you to put a lot of faith in your developer that they will produce a quality home on time. A shoddy developer or a crooked one will use low-quality materials and appliances in the home to cut costs and might even abandon the project mid-way. Poor workmanship in new construction will be very costly for you because you will need to start maintenance much sooner than you would need to in a high-quality building like Eighty Seven Park.

Not negotiating with your developer

Buying new construction is a business deal like any other and in business, there are always negotiations. If you don’t negotiate, you will pay full price or even above market rates because it is not in the developer’s place to look out for your financial interests. Some homeowners assume that the developer will simply give them the best deal for them as the buyer and this can prove very costly, so it is important to negotiate.

Not planning well financially

Particularly for new homeowners, it is very easy not to plan on what could be a very large future expense. Items that are easy to miss include landscaping costs and Home Association rules and financial obligations. The best way to avoid missing a key financial component is to engage the services of an experienced realtor who will layout all current and future financial expenses that you will face.

So those are some of the five costly mistakes that you might unwittingly make when buying new construction.